On january 1 year one a company starts a defined


On January 1, Year One, a company starts a defined contribution pension plan. The contract with the employees requires the company to convey to a trustee $10,000 each year for every current employee who has been working for the company one year or more. The first payment of $220,000 is properly made on December 31, Year One. Which of the following is correct for this company as of the end of Year One? a. Plan assets are zero and the projected benefit obligation is zero. b. Plan assets are $220,000 and the projected benefit obligation is zero. c. Plan assets are zero and the projected benefit obligation is $220,000. d. Plan assets are $220,000 and the projected benefit obligation is $220,000.

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Financial Accounting: On january 1 year one a company starts a defined
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